Could you provide an overview of Endeavour’s two producing silver mines, Guanaceví and Bolañitos?

We are a mid-tier silver producer with a guidance between 7 to 7.9 million oz/y AgEq from our two underground epithermal vein system mines in Mexico: Guanaceví and Bolañitos. Guanaceví is our largest asset, contributing 5–6 million oz AgEq annually, with 80% of revenue from silver and 20% from gold. Bolañitos, a smaller operation, produces approximately 2.5 million oz AgEq, but with a reverse revenue split—80% gold, 20% silver. Our 2024 production guidance reflects a temporary setback at Guanaceví, where a trunnion failure in the ball mill reduced throughput for four months. In 2022 and 2023, we produced over 9 million oz AgEq. Nevertheless, our production profile is set to transform once we bring the Terronera project online, which will become Endeavour Silver’s largest mine. Endeavour’s goal is to become a senior silver producer. 

When will Terronera enter production and what impact will this new mine have on Endeavour’s growth?

We have been building Terronera, located in Jalisco, Mexico since April 2023, and we expect to commission the mine in Q2 of this year and ramp up commercial production by mid-year. Terronera will produce 7 million oz AgEq anually, comprising 4–4.5 million oz silver and 35–40,000 oz gold. Terronera will completely change Endeavour. Not only will it effectively double our production, but it will also impact our positioning in terms of mine life and production costs. Terronera has a proven 10-year LOM based on current reserves, but we expect to mine it for 20-25 years. Another standout feature at Terronera is its low-cost profile—gold accounts for 40% of revenue and will effectively pay for the silver, making it one of the lowest-cost producing assets in the silver space. This marks a major shift from our two mature mines, particularly Guanaceví, which has a royalty and therefore runs at higher operating costs.

Could you also tell us how the Pitarilla development project in Durango fits into your portfolio strategy and whether Endeavour is considering further acquisitions?

We acquired Pitarilla from SSR Mining in 2022 and are currently advancing it through a feasibility study expected in early 2026. We believe Pitarilla can produce anywhere between 6 to 8 million oz AgEq, along with zinc and lead byproducts. 

Regarding acquisitions, we are always looking, but primary silver assets are rare. 

How do you see silver prices positioned in the current world of volatility?

Silver is one of the most volatile metals, making it both exciting and nerve-wracking. Since 2007, global production has remained stable at around 800 million oz/y. 

With more silver going into industrial use, we are left with a smaller pie of 350 million oz on the monetary side. If financial instability increases, more investment could flow back into silver as a safe-haven asset and push prices up to US$50/oz highs. So it is just a matter of time until silver is going to push through. It also ties to how people feel about the US economy and where they put their dollars. Bitcoin has become an alternative store of value, competing with hard assets like silver and gold. 

Can you comment on whether you think the business climate in Mexico will change under the new government?

Claudia Sheinbaum will likely follow her predecessor’s agenda for the first one or two years of her mandate before she becomes her own president. At the end of the day, she took over Andrés Manuel López Obrador’s party. However, there are changes. When Claudia took over, bureaucratic turnover was significant and the new team is still getting up to speed. One of the notable shifts we've seen is improved dialogue with the Secretariat of Environment and Natural Resources (SEMARNAT). We are also starting to hear of some permits coming through. There has also been been a lot of rhetoric around US tariffs, and that will likely push both Canada and Mexico to diversify their economies and reduce their dependency on the US, which also entails taking a more commercial approach to permitting. Claudia has been thrown a real curve ball in her first three months in office, but I expect we’re going to see better government responsiveness in the near term.